Financial Planning Education Framework

Financial Planning
Education Framework
Copyright ©2015, Financial Standards Planning Board Ltd. All rights reserved. 1
CFP Certification Global excellence in financial planningTM

TABLE OF CONTENTS
Introduction.................................................................................................................................................. 2
FPSB’s Financial Planning Education Framework
I. Financial Planning Learning Level Descriptor .................................................................................. 3
II. Financial Planning Education Components ...................................................................................... 5
III. Financial Planning Education Topic Categories .............................................................................. 7
IV. Financial Planning Education Areas (by Component) ............................................................... 9–16
1. Financial Planning Principles, Process and Skills ........................................................................... 9
2. Financial Management .................................................................................................................... 10
3. Tax Principles and Optimization ..................................................................................................... 11
4. Investment Planning / Asset Management ..................................................................................... 11
5. Risk Management and Insurance Planning .................................................................................... 13
6. Retirement Planning ........................................................................................................................ 14
7. Estate Planning and Wealth Transfer ............................................................................................. 14
8. Integrated Financial Planning ......................................................................................................... 15
FPSB’s Financial Planning Curriculum Framework
V. Topics, Subtopics, and Learning Outcomes ............................................................................. 17–45
Copyright ©2015, Financial Planning Standards Board Ltd. All rights reserved. 1
INTRODUCTION
Education and training programs for financial services qualifications and professional certifications
increasingly rely on a competency-based approach, whereby a curriculum’s learning outcomes and
theoretical knowledge connect to appropriate practice outcomes or competencies for a given job function.
In any national education system, curriculum documents are written in broad terms that do not directly
address the unique needs of individual institutions or specific groups of students. Consequently, educators
need to translate curriculum frameworks into specific teaching programs of sufficient detail to guide day-to-
day courses and activities. FPSB therefore developed the Education Framework to guide implementation of
the knowledge for the financial planning profession. This Financial Planning Education Framework was
specifically designed to reflect the cognitive levels and outcomes required for CFP professionals.
In developing the global education standard for financial planning, FPSB developed learning outcomes and
content for its Financial Planning Education Framework that relate to the competencies, skills and knowledge
needed to practice financial planning (as defined by FPSB’s Financial Planner Competency Profile). By
linking the Financial Planning Curriculum Framework directly to its Financial Planner Competency Profile,
FPSB encourages educators to be directed by the actual practice of financial planning when developing
financial planning curricula, so that students develop thinking and capabilities that prepare them to practice
as competent financial planning professionals.
FPSB’s Financial Planning Education Framework provides an outline for structuring financial planning
education modules and courses, and reinforces globally consistent learning outcomes and standards among
these courses. The Curriculum Framework highlights the inter-relationships among module, program and
qualification/practice and among teaching, learning and assessment, and supports program comparison and
student mobility within a territory and internationally.
The ultimate goal with the Financial Planning Education Framework is to

 Support content development for a global certification, consistent with FPSB’s Competency Profile;
and to
 Support Members and education providers so that programs, qualifications, and course content,
adapted to meet local regulatory and legislative requirements, conform to FPSB’s standards.
FPSB’s Financial Planning Education Framework consists of:
I. Financial Planning Education Learning Level Descriptor

II. Financial Planning Education Components
III. Financial Planning Education Topic Categories
IV. Financial Planning Education Areas of Competency
The Curriculum Framework follows the Education Framework, and identifies how the Topics, Sub-topics, and
Learning Outcomes work together within the context of a financial planning curriculum.
FINANCIAL PLANNING EDUCATION FRAMEWORK
I. FINANCIAL PLANNING EDUCATION LEARNING LEVEL DESCRIPTOR
A curriculum learning level descriptor describes the demand placed on a learner by a qualification’s
education program. All qualification frameworks demonstrate progression in learning by using level
descriptors to describe the level of abilities, skills and knowledge a student must master to be prepared for
competent practice. While qualifications with the same level descriptor are broadly similar, the qualifications’
education programs and curricula can differ in terms of content and duration.
FPSB’s Financial Planning Education Learning Level Descriptor1 establishes the overall level at which a
financial planning education program should be delivered. While the level at which a specific module or
subject within the program is delivered could fall below or exceed the recommended level, in aggregate, the
student should master appropriate competence, skills and knowledge at the recommended level to prepare
him or her to competently and ethically practice financial planning. While knowledge, comprehension and
application form part of the educational requirements of each module or subject, the student is expected to
master and integrate the financial planning education program content at the analysis, synthesis and
evaluation cognitive levels.2
FPSB’s Financial Planning Education Learning Level Descriptor enables educators around the world to align
the level of their financial planning education programs to FPSB’s Financial Planning Curriculum Framework,
thereby creating greater national, regional and global consistency in the delivery of financial planning
education and training and in the preparedness of students to competently and ethically practice financial
planning.
Educators should deliver financial planning modules, courses or programs at a sufficient level3 of instruction
that ensures the successful student is able to:4
Knowledge
 Demonstrate appropriate knowledge and understanding (including critical understanding of theories

and principles and their application) of the practice of financial planning, as described by FPSB’s
Financial Planner Competency Profile and Financial Planning Education Framework;
 Apply advanced knowledge and understanding, and devise recommendations, sustain opinions and
solve problems that indicate a professional approach to the practice of financial planning, as
described by FPSB’s Financial Planner Competency Profile and Financial Planning Curriculum
Framework;
1
The FPSB’s Financial Planning Education Learning Level Descriptor is modeled on the European Qualifications Framework (EQF), a
multinational education framework that acts as a translation device to make national qualifications more readable across Europe.
2
FPSB uses Bloom’s taxonomy of learning objectives to define the cognitive level at which knowledge, skills or competence should be
learned or mastered. Bloom’s learning objective framework consists of six major categories: Knowledge, Comprehension, Application,
Analysis, Synthesis, and Evaluation. These cognitive level categories can be directly applied to the three Financial Planning Functions
found in FPSB’s Financial Planner Competency Profile: Collection (Knowledge and Comprehension), Analysis (Application and
Analysis), and Synthesis (Synthesis and Evaluation).
3
FPSB’s Financial Planning Curriculum Learning Level Descriptor is modeled on level six of the EQF which is regarded as at an
undergraduate (bachelor’s) degree level. (http://ec.europa.eu/ploteus/sr/node/1440)
4
Knowledge means the outcome of the assimilation of information through learning and can be seen as the body of facts, principles,
theories and practices that is related to a field of work or study.
Skills mean the ability to apply knowledge and use know-how to complete tasks and solve problems.
Competence means the proven ability to use knowledge, skills and personal, social and/ or methodological abilities, in work or study
situations and in professional and personal development. These terms should be understood in an academic context and should not be
confused with similar used in the Financial Planning Competency Profile.
 Collect, analyze and synthesize appropriate data to develop strategies and make judgments and
recommendations that take into consideration relevant social, scientific, legal and ethical issues;
 Communicate and present information, ideas, problems and solutions on financial planning matters
to both specialist and non-specialist audiences, making appropriate use of media and technology;
and
 Develop the learning abilities necessary to continue further study with a high degree of autonomy.
Skills
 Apply advanced skills, demonstrating mastery and innovation, in solving complex and unpredictable
problems in the field of financial planning; building rapport, fostering engagement, and developing
professional client relationships.
Competence
 Reflect the competence to demonstrate, in study and practice contexts, the Financial Planner
Abilities described in FPSB’s Financial Planner Competency Profile;
 Reflect the competence to manage complex technical or professional activities or projects in the field
of financial planning, with responsibility for decision-making; and
 Reflect the competence to take responsibility for continuing professional development in the field of
financial planning.
II. FINANCIAL PLANNING EDUCATION COMPONENTS
FPSB’s Integrated Approach to Competency Based Education & Development
Informed by FPSB’s Fundamental Financial Planning Practices and the relevant Performance Standards,
FPSB has developed a comprehensive competency profile that incorporates the necessary elements of
cognitive, professional and social competence necessary for a financial planning professional to provide
financial planning advice of high quality during financial planning engagements with clients, taking into
account practice type, setting and location.
From this comprehensive competency profile FPSB has derived a curriculum content that, when
incorporated in the context of an appropriate program of learning, teaching and professional development
experiences, enables a person to come to:
 know, understand and apply the body of knowledge of the financial planning profession;
 demonstrate mastery of that knowledge and use it to solve complex financial planning problems in
the context of engaged, professional client relationships;
 undertake these activities, including continuing professional development, in a self-directed,
responsible and accountable manner;
 and to be acknowledged as a financial planning professional.
FPSB’s Financial Planning Education Framework consists of the following eight Curriculum Components
(described below):
1. Financial Planning Principles, Process and Skills
2. Financial Management
3. Tax Principles and Optimization
4. Investment Planning / Asset Management
5. Risk Management and Insurance Planning
6. Retirement Planning
7. Estate Planning and Wealth transfer
8. Integrated Financial Planning
The first seven Curriculum Components relate to the Financial Planning Principles, Process and Skills
described in FPSB’s Financial Planner Competency Profile, while the Integrated Financial Planning
Curriculum Component provides students the opportunity to gain the knowledge and practical skills needed
to integrate financial planning knowledge, skills and abilities from the first seven Curriculum Components
using real world client situations.
Educators can use the Financial Planning Curriculum Components to create financial planning educational
modules/courses that teach students to develop strategies and evaluate the advantages and disadvantages
of each strategy; optimize strategies and make recommendations; and prioritize action steps to assist clients
in implementing recommendations as part of the process of developing a financial plan. More than one
component can form part of a module/subject as long as learning outcomes are covered at an appropriate
level.
When developing educational modules/courses, it will be beneficial to cover the first curriculum component
(Financial Planning Principles, Process and Skills) prior to addressing components two through seven.
Likewise, the eighth component (Integrated Financial Planning) works best as the final course. Financial
Management should follow the first course (or it may be combined with the first course), as it covers topics
that are foundational for the remaining topic areas. Components 3-7 can be addressed in any order. That
said, Risk Management and Insurance Planning should be covered prior to Estate Planning and Wealth
Transfer. Likewise, Tax Principles and Optimization should be addressed prior to Estate Planning and
Wealth Transfer. Both of the aforementioned content areas (Risk Management and Insurance Planning; Tax
Principles and Optimization) contain information that will be helpful to someone studying Estate Planning and
Wealth Transfer. Investment Planning/Asset Management should be covered prior to Retirement Planning so
students have the information necessary to assess the tools necessary to fund retirement planning goals.
Investment Planning/Asset Management covers enough topics and depth that it should likely not be
combined with any other content area.
Total hours of classroom hours (on ground, online, or a blended combination) are variable, depending on the
way in which courses are constructed. However, educators should keep in mind a benchmark of around 240
hours (or equivalent), including capstone or applied learning courses/workshops. Integrated Financial
Planning (the eighth component) should be considered as the foundation for a capstone or applied learning
course.
Curriculum Components
1. Financial Planning Principles, Process and Skills
The Principles and Practices of Financial Planning Component provides the student with an introduction
to basic financial planning information and principles including: the financial planning process, client
interactions and behavior, time value of money applications, ethical and practice standards for financial
planning, compliance issues, economics, and the regulatory environment of the applicable jurisdiction.
The Financial Management Component prepares the student to develop strategies and use techniques
to optimize short and mid-term cash flow, assets and liabilities, as well as to collect and synthesize
information relating to personal financial statements, cash flow and debt, asset acquisition, liabilities,
education planning and emergency fund provision.
The Tax Principles and Optimization Component prepares the student to understand and broadly
evaluate strategies and techniques to maximize the present value of the client’s after-tax net worth and
includes: the principles, current law/policies and practice of taxation and their impact on the client’s
financial situation, and financial planning for individuals, couples and families in their roles as individual
investors, employees and business owners.
The Investment Planning/Asset Management Component prepares the student to understand behavioral
finance issues impacting clients, and to develop strategies and use techniques to optimize risk adjusted
real returns on assets considering the client’s risk profile, requirements, financial capacity and
constraints, as well as to understand: various types of securities traded in financial markets, investment
theory and practice, portfolio construction and management, and investment strategies and tactics.
(Note: The terms “risk,” “risk exposure” and “risk tolerance” refer to the risk of financial loss due to
market circumstances.)
The Risk Management and Insurance Component prepares the student to develop strategies and use
techniques to manage financial exposure due to personal risk. (Note: The terms “risk,” “risk exposure”
and “risk tolerance” refer to the risk of financial loss due to personal circumstances).
The Retirement Planning Component prepares the student to develop strategies and use techniques for
wealth accumulation and withdrawal during retirement years, taking into consideration asset locations
and the client’s personal financial goals, risk tolerance, risk capacity, and structure and impact of public
and private retirement plans on the client’s financial plan.
7. Estate Planning and Wealth Transfer
The Estate Planning and Wealth Transfer Component prepares the student to understand and broadly
evaluate strategies and use techniques to handle the preservation and distribution of accumulated
assets, and to understand the legal, tax, financial, insurance and non-financial aspects of this process, to
efficiently conserve and transfer wealth, consistent with the client’s goals, including those that are
philanthropic and charitable in nature.
The Integrated Financial Planning Component serves as a capstone course that allows the student to
engage in critical thinking, make decisions and integrate among the Curriculum Components (Principles
and Practices of Financial Planning, Financial Management, Investment Planning/Asset Management,
Risk Management and Insurance, Tax Principles and Optimization, Retirement Planning and Estate
Planning and Wealth Transfer) while developing strategies, recommendations and financial plans for
clients using real world situations and facts.
III. FINANCIAL PLANNING KNOWLEDGE TOPIC CATEGORIES
The eight curriculum components listed above, are expanded in the following 69-topic categories to identify
the broad knowledge areas on which a financial planning professional must be able to draw to deliver
financial planning to clients, or when interacting with colleagues or others in a professional capacity.
Educators in a territory determine the territory-specific topics and level of topic coverage. Each knowledge
area is included to adequately prepare students to competently and ethically practice financial planning.
1. Financial Planning Principles, Process, and Skills
1.1 Financial planning process

1.2 Financial planning practice and ethics
1.3 Professional Skills
1.4 Regulatory, economic and political environments that affect personal financial planning
1.5 Law and compliance
1.6 Time value of money
1.7 Client characteristics
1.8 Client risk profile
1.9 Client engagement and communications
1.10 Critical thinking
2.1 Principles of financial management

2.2 Personal and small business balance sheet (net worth statement)
2.3 Use and non-use assets
2.4 Cash flow statement
2.5 Budget preparation and management
2.6 Savings analysis and strategy
2.7 Emergency fund
2.8 Credit and debt management
2.9 Financial ratio analysis
2.10 Specific purpose planning
3.1 Taxation principles

3.2 Tax planning objectives
3.3 Tax planning principles
3.4 Tax planning law and policy
3.5 Tax analysis and calculations
3.6 Tax planning strategies
3.7 Tax planning for asset location
4.1 Investment principles

4.2 Investment objectives, constraints, capacity and suitability
4.3 Investment time horizon
4.4 Behavioral finance
4.5 Asset classes
4.6 Investment theory
4.7 Performance measurement
4.8 Asset allocation and performance
4.9 Investment products – evaluation, selection and monitoring
5.1 Risk management principles

5.2 Insurance planning objectives
5.3 Analysis and evaluation of risk exposures
5.4 Risk strategies
5.5 Risk management products
5.6 Insurance law and claims process
5.7 Product, company and adviser selection and due diligence
6.1 Retirement principles

6.2 Retirement objectives
6.3 Retirement needs analysis and forecasts
6.4 Potential sources of retirement income
6.5 Retirement income and withdrawal projections and strategies
6.6 Retirement planning and funding products
7. Estate Planning and Wealth Transfer
7.1 Estate planning principles

7.2 Estate planning objectives
7.3 Legal related issues
7.4 Asset ownership and its implications
7.5 Estate planning documents
7.6 Succession planning
7.7 Special family situation
7.8 Projected financial situation at death
7.9 Estate planning strategies
7.10 Philanthropy and charitable giving
7.11 Management in the event of incapacity (i.e., living estate planning)
8.1 Client engagement, communication, and financial planning process

8.2 Collection and data
8.3 Attitudes, goals and objectives
8.4 Issues and problems
8.5 Analysis
8.6 Strategies
8.7 Synthesis and recommendations
8.8 Implementation
8.9 Periodic review
IV. FINANCIAL PLANNING EDUCATION AREAS (BY CURRICULUM COMPONENT AND LEARNING
OUTCOMES)
A learning outcome is a statement of what a learner is expected to know, understand and be able to do at
the end of a period of learning. Learning outcomes are linked to a course’s overall level descriptor and are
written in terms of “the learner will be able to do something…” or “the learner is expected to be able to do
something…”
FPSB’s Financial Planning Curriculum Learning Outcomes specify the general areas of learning a student is
expected to master to enable the student to competently perform. With the exception of the Integrated
Financial Planning Component, all learning outcomes described in FPSB’s Financial Planning Curriculum
Framework relate to the Fundamental Financial Planning Practices and Financial Planner Abilities described
in FPSB’s Financial Planner Competency Profile.
1. Financial Planning Principles, Process and Skills Learning Outcomes
On successful completion of the Financial Planning Principles, Process and Skills Component, the
student will be able to:
1.1 Apply the financial planning process
1.2 Demonstrate ethical standards in dealings and relationships with clients and third parties
1.3 Apply ethical principles, standards of practice and rules of conduct for the practice of financial
planning, relevant to the jurisdiction
1.4 Demonstrate communications skills
1.5 Demonstrate analytical skills
1.6 Demonstrate presentation skills
1.7 Demonstrate knowledge of relevant regulatory, economic and political environments
1.8 Demonstrate relevant knowledge of law and considers and discusses the impact of compliance
issues on the practice of financial planning
1.9 Discuss client engagement and behavioral aspects of financial planning applicable to the
financial planning engagement
1.10 Demonstrate the ability to understand and address client attitudes toward risk
1.11 Demonstrate knowledge of practice management and other business aspects of financial
planning
1.12 Apply time value of money principles
2. Financial Management Learning Outcomes
On successful completion of the Financial Management Component, the student will be able to:
Collect the quantitative and qualitative information required to develop a financial plan
2.1 Collect information regarding the client’s assets and liabilities
2.2 Collect information regarding the client’s cash flow, income and/or obligations
2.3 Collect information necessary to prepare a budget
2.4 Prepare statements of the client’s net worth, cash flow and budget
2.5 Determine the client’s propensity to save
2.6 Determine how the client makes spending decisions
2.7 Determine the client’s attitudes toward debt
Analyze potential opportunities and constraints and assess information to develop strategies
2.8 Determine whether the client is living within financial means
2.9 Determine the issues relevant to the client’s assets and liabilities
2.10 Determine the client’s emergency fund provision
2.11 Compare potential cash management strategies for the client
2.12 Assess whether the emergency fund is adequate
2.13 Assess the impact of potential changes in income and expenses
2.14 Identify conflicting demands on cash flow
2.15 Assess financing alternatives
Synthesize information to develop and evaluate strategies to create a financial plan
2.16 Develop financial management strategies
2.17 Evaluate advantages and disadvantages of each financial management strategy
2.18 Optimize strategies to make financial management recommendations
2.19 Prioritize action steps to assist the client in implementing financial management
recommendations
3. Tax Principles and Optimization Learning Outcomes
On successful completion of the Tax Principles and Optimization Component, the student will be able to:
3.1 Collect the information necessary to establish the client’s tax position
3.2 Identify taxable nature of assets and liabilities
3.3 Identify the tax structure of client accounts
3.4 Identify current, deferred and future tax liabilities
3.5 Identify parties relevant to the client’s tax situation
3.6 Determine the client’s attitudes toward taxation

3.7 Review relevant tax documents
3.8 Analyze existing and potential tax strategies and structures for suitability
3.9 Assess financial impact of tax planning alternatives
3.10 Develop tax planning strategies
3.11 Evaluate advantages and disadvantages of each tax planning strategy
3.12 Optimize strategies to make tax planning recommendations
3.13 Prioritize action steps to assist the client in implementing tax planning recommendations
4. Investment Planning / Asset Management Learning Outcomes
On successful completion of the Investment Planning / Asset Management Component, the student will
be able to:
4.1 Collect information necessary to prepare detailed statement of investment holdings
4.2 Determine the client’s current asset allocation
4.3 Identify cash flows available for investment, and expected withdrawals from the investment
portfolio
4.4 Determine the client’s experience with, and attitudes and biases, towards investments
4.5 Determine the client’s investment objectives
4.6 Determine the client’s tolerance for investment risk
4.7 Identify the client’s assumptions and return expectations, and mutually agree on planning
assumptions
4.8 Identify the client’s goal achievement time horizons

4.9 Calculate required real rate of return to reach the client’s objectives
4.10 Determine the characteristics of investment holdings
4.11 Determine the implications of acquiring/disposing of assets
4.12 Analyze potential investment strategies
4.13 Assess whether investment return expectations are consistent with the risk capacity and
tolerance
4.14 Assess whether asset holdings are consistent with risk capacity, tolerance and required rate of
return
4.15 Analyze client’s current holdings
4.16 Assess potential investment vehicles for use in client portfolios

4.17 Develop asset management strategies
4.18 Evaluate advantages and disadvantages of each asset management strategy
4.19 Optimize strategies to make asset management recommendations
4.20 Select appropriate investment vehicles to implement the recommended strategy
4.21 Prioritize action steps to assist the client in implementing asset management recommendations
4.22 Prepare and Investment Policy Statement
4.23 Prepare periodic reporting material
5. Risk Management and Insurance Planning Learning Outcomes
On successful completion of the Risk Management and Insurance Planning Component, the student will
be able to:

5.1 Collect details of the client’s existing insurance coverage
5.2 Identify potential financial obligations of the client
5.3 Determine the client’s risk management objectives and risk exposures
5.4 Determine the client’s tolerance for risk exposure
5.5 Determine relevant family and lifestyle issues and attitudes
5.6 Determine health issues
5.7 Determine the client’s willingness to take active steps to manage financial risk
5.8 Determine characteristics of existing insurance coverage
5.9 Examine current and potential risk management strategies
5.10 Assess exposure to financial risk
5.11 Assess the client’s risk exposure against current insurance coverage and risk management
strategies
5.12 Assess the implications of changes to insurance coverage
5.13 Prioritize the client’s risk management needs

5.14 Develop risk management strategies
5.15 Evaluate advantages and disadvantages of each risk management strategy
5.16 Optimize strategies to make risk management recommendations
5.17 Prioritize action steps to assist the client in implementing risk management recommendations
6. Retirement Planning Learning Outcomes
On successful completion of the Retirement Planning Component, the student will be able to:

6.1 Collect the details of potential sources of retirement income
6.2 Collect the details of estimated retirement expenses
6.3 Determine the client’s retirement objectives
6.4 Determine the client’s attitudes towards retirement
6.5 Mutually agree on retirement planning assumptions
6.6 Develop financial projections based on current position, including any gap between income
needs and funding
6.7 Determine if the client’s retirement objectives are realistic
6.8 Examine potential retirement planning strategies
6.9 Assess financial requirements at retirement to maintain desired lifestyle
6.10 Assess the impact of changes in assumptions on financial projections
6.11 Assess trade-offs necessary to meet retirement objectives

6.12 Develop retirement planning strategies
6.13 Evaluate advantages and disadvantages of each retirement planning strategy
6.14 Optimize strategies to make retirement planning recommendations
6.15 Prioritize action steps to assist the client in implementing retirement planning recommendations
6.16 Discuss with the client the impact of changes in assumptions on financial projections
7. Estate Planning and Wealth Transfer Learning Outcomes
On successful completion of the Estate Planning and Wealth Transfer Component, the student will be
able to:

7.1 Collect legal agreements and documents that impact estate planning strategies
7.2 Identify the client’s estate planning objectives
7.3 Identify family dynamics and business relationships that could impact estate planning strategies
7.4 Project net worth at death
7.5 Analyze constraints to meeting the client’s estate planning objectives
7.6 Compare potential estate planning strategies
7.7 Calculate potential expenses and taxes owed at death
7.8 Assess the specific needs of beneficiaries
7.9 Assess the liquidity of the estate at death
7.10 Develop estate planning strategies, including living estate planning
7.11 Evaluate the advantages and disadvantages of each estate planning strategy
7.12 Optimize strategies to make estate planning recommendations
7.13 Prioritize action steps to assist the client in implementing estate planning recommendations
8. Integrated Financial Planning Learning Outcomes
On successful completion of the Integrated Financial Planning Component, the student will be able to:
8.1 Identify the client’s objectives, needs, values and constraints (e.g., taxes) that have financial
implications, with time and funding (money) specificity and prioritization
8.2 Identify the information for the financial plan
8.3 Identify the client’s legal issues that affect the financial plan
8.4 Determine the client’s attitudes, biases, drivers and level of financial sophistication
8.5 Identify material changes in the client’s personal and financial situation
8.6 Prepare information to enable analysis
8.7 Analyze the client’s objectives, needs, values and information to prioritize the financial planning
components
8.8 Examine inter-relationships among financial planning components
8.9 Compare opportunities and constraints and assess collected information across financial
planning components
8.10 Examine the impact of economic, political and regulatory environments
8.11 Prioritize recommendations from the financial planning components to optimize the client’s
situation
8.12 Consolidate the recommendations and action steps into a financial plan (written or iterative in an
interactive format)
8.13 Measure the progress toward achievement of the financial plan objectives
8.14 Determine the appropriate process and cycle of review for the financial plan
FINANCIAL PLANNING CURRICULUM FRAMEWORK
The Curriculum Framework identifies how the Topics, Sub-topics, and Learning Outcomes work together
within the context of a financial planning curriculum. Learning outcome statements identify the desired results
of covering the topics and subtopics. The learning outcomes are built loosely around Bloom’s Taxonomy:
Knowledge, Comprehension, Application, Analysis, Synthesis and Evaluation. As an example of Bloom’s
hierarchy, consider the learning outcome to evaluate a situation. Before being able to accomplish that
objective, a learner must first know the content and understand or comprehend it. He or she must them be
able to apply and analyze the knowledge and comprehension that has been gained. Finally, the learner will
be able to integrate or synthesize all that has previously been learned and use that learning to evaluate a
situation, making appropriate judgments based on the scenario provided. Learning outcomes also serve as
the primary criteria for assessment, in that learners can be assessed based on the degree to which they
have mastered the learning outcomes; the learning outcome statements clearly identifying the content
students should learn.
1. Financial Planning Curriculum Component: Financial Planning Principles, Process and Skills
Objective: The Financial Planning Principles, Process and Skills Component provides the student with an
introduction to basic financial planning information and principles including: the financial planning process,
client interactions and behavior, time value of money applications, ethical and practice standards for financial
planning, compliance issues, economics, and the regulatory environment of the applicable jurisdiction.
Topics Subtopics Learning Outcomes

1.1 Financial planning process Introduction to personal financial  Describe the background,
planning process and the practice of
financial planning
Roles of the financial planner
 Demonstrate knowledge and
Six step financial planning process understanding of the process
of giving financial advice
Distinction between financial
planners and financial product  Demonstrate knowledge of
advisors
drafting a financial plan
Qualitative and quantitative data
(including human capital)
 Explain the advisory functions
of financial planners including:
the holistic and relational role
of the financial planner as
distinct from a simple product
advisory role
 Apply the financial planning

process to a typical client
scenario
1.2 Financial planning practice Financial Planning Practice  Discuss, explain and apply
and ethics Standards standards of practice and rules
of conduct for the practice of
Financial Planner Code of Ethics and financial planning, relevant to
Professional Responsibility / the jurisdiction
Professional Conduct of an
appropriate professional associations  Demonstrate ethical
appreciation in dealings and
Implementing the Practice Standards relationships with clients and
and the Code of Ethics in practice third parties
Model Rules of Conduct for CFP  Identify and understand ethical
professionals (subject to approval) considerations and
professional conduct
Hierarchy of ethical principles (local requirements in the giving of
vs. international vs. statutory) financial planning advice
Management of a financial planning  Discuss, explain and apply

practice: ethical principles for the
 Business plan practice of financial planning,
 Marketing  Demonstrate knowledge of
 Record Keeping relevant practice management
 Safeguarding client information and other business aspects of
 Ethical and regulatory misconduct financial planning
 Use sound judgment when

engaging in ethical practice
and display professional
standards reflecting
responsible and sustainable
practices
 Understand the importance of

keeping documents
confidential and protecting
client information
1.3 Professional skills Covering the Professional Skills as  Apply the financial planning
per the Financial Planner process to meet client
Professional Skills matrix in terms of objectives
the Financial Planner Competency
Profile:  Demonstrate listening and
 Professional responsibility communication abilities in
 Practice goal-setting
 Communication  Demonstrate the ability to use
o In professional context client friendly communication
o Interpersonal verbal and skills during the discovery
non-verbal process
 Cognitive  Apply good listening and
writing skills
Safeguarding client information
 Demonstrate presentation
Client education skills by making a presentation
of a financial plan in a
What does it mean to be a simulated client meeting
professional?
1.4 Relevant regulatory, Introduction to the regulatory  Explain knowledge of

economic and political environment: regulatory environment related
environments that affect  Regulators to financial services
personal financial planning  Legislation and Regulation
 Describe the legal framework
Fiduciary duty: within which financial planners
 Ethical and professional conduct operate and their legal, social
and ethical responsibilities
Legislated ‘client best interests’
requirement  Demonstrate basic knowledge
of micro- and macro-economic
Suitability environment as it applies to
financial planning
Introduction to the economic
environment:  Explain the role of the financial
 Macroeconomics system, its function, and the
key participants within the
Economic environment & financial finance system
planning:
 Monetary Fiscal Policy  Describe the various
 Business Cycle regulatory bodies, their
 Economic Indicators function and responsibilities
Introduction to the social and political  Identify the various financial

environments: markets, and the
 Local government sentiment characteristics and
 Social welfare policy instruments traded on financial
 Taxation policy markets
 Retirement policy
Assess the potential risks
affecting the financial system,
their impact on financial
service products, providers,
clients and economic
performance
 Demonstrate knowledge of
social and political
environments relevant to
financial planning and the
economic environment
1.5 Law and compliance Define compliance and its  Discuss the impact of legal,
implications regulatory and ethical
Disclosure documents compliance issues on the
o Examples practice of financial planning
 Discuss relevant case histories
Potential conflicts of interest involving financial planners
Private law, including torts and trusts
Business and contract law

1.6 Time value of money Future value of a single sum  Apply TVM calculations to a
client financial planning
Present value of a single sum scenario
Number of compounding periods and  Describe how time value of

interest rate per compounding period money (TVM) concepts allows
the adviser to translate goals
Present value of an annuity/annuity into money
due
 Demonstrate the ability to
Future value of an annuity/annuity solve time value of money
due problems, as well as to explain
how the variables in a time
Periodic Payment or Receipt value of money problem
interact
Irregular cash flows
Internal rate of return
Net present value
1.7 Client characteristics Client Goals  Discuss behavioral aspects of

financial planning applicable to
Family Values & Status the financial planning
engagement
o Spousal Differences
Considerations for Non-traditional apply the knowledge and
families appropriate skills for asking
the right questions in order to:
Generational Cohort  Identify the client’s
personal financial and
Communication lifestyle goals for the future
o Methods  Identify the considerations
o Preferences to be taken into account in
o Physiological responses and drawing up the client’s
client action financial plan
 Identify the specific details
about the client and or
family and or enterprise
which may be needed
during the course of the
financial
advice process
 Determine priorities
regarding the personal,
financial and particular
considerations that are of
importance to the client’s
financial plan
1.8 Client risk profile Ability  Demonstrate the ability to
understand and address client
Willingness and preferences attitudes toward financial and
investment risk
Tolerance
 Understand whether the client
Need has a reasonable
comprehension of the types
Capacity and number of risks that may
be encountered during his/her
Experiences and personality traits life
impacting risk profile
 Understand how a client feels
regarding the specific risks
that may be encountered, and
how he/she would react in
certain situations
1.9 Client engagement and Discovery process  Discuss client engagement
communication and behavioral aspects of
Appreciative inquiry financial planning applicable to
the financial planning
Open-ended and closed questions engagement
 Apply client engagement
principles and practices
appropriately
appropriately apply
questioning techniques
1.10 Critical thinking The process of actively and skillfully  Demonstrate the ability to think
conceptualizing, applying, analyzing, critically and make appropriate
synthesizing and evaluating decisions
information to reach an answer of  Understand relevant criteria
solution and applicable methods for
making an appropriate
Reflective thinking judgement
Financial Planning Curriculum Component: Financial Management

Objective: The Financial Management Component prepares the student to develop strategies and use
techniques to optimize short and mid-term cash flow, assets and liabilities, as well as to collect and
synthesize information relating to personal financial statements, cash flow and debt, asset acquisition,
liabilities, education planning and emergency fund provision.
2.1 Principles of financial The objectives of financial  Explain the main objectives of
management management financial management
Application of financial calculations in  Use a financial calculator and

the financial management process Excel in solving a variety of
financial problems
The optimal economic point. (That
point, in the creation of wealth, in  Prepare and interpret client´s
which money does not bring more financial statement
happiness to a person. It is the point
in which the person has enough  Communicate qualitative and
permanent income as to cover – quantitative issues with clients
loosely- all his/her economic needs)
 Administer the client’s funds
The basic financial statements with regard to investment, risk
(Balance sheet [net worth statement], and retirement planning
cash flow and budget) efficiently
Financial ratios
 Incorporate financial ratios
Client first (Manage your client´s
investments as you manage your
own. It refers particularly to the risk-
 Identify a standard guideline
return trade off)
related to a financial ratio
2.2 Personal balance sheet Assets, liabilities and net worth  Collect information regarding
the client’s assets and
liabilities
Analysis
 Prepare statements of the
client’s net worth
 Determine the issues relevant

to the client’s assets and
liabilities
 Assess the appropriateness of

the client’s assets and
liabilities given the client’s
existing and potential future
financial situation
2.3 Use and non-use assets Broad categories of assets  Differentiate between use and
non- use assets
Kinds of use assets, including
depreciating/non-depreciating, tax  Calculate the front-end ratio
effective/non-tax effective and other relevant ratios
Personal assets:  Explain taxation for use and

 Car non-use assets
 Home
 Determine when it is beneficial
Mortgage Loans: to pay off a mortgage or long-
 Taxation for use and non-use term debt
assets
2.4 Cash flow Income and expenses –  Collect information regarding

current/future the client’s cash flow, income
and/or expenses (obligations)
Effects of Inflation
 Prepare statements of the
Analysis client’s cash flow
Life cycles/stages  Demonstrate the effects of

inflation on a proposed
monetary goal
 Determine whether the client is

living within financial means
 Compare potential cash

management strategies and
products for the client
 Assess the impact of potential

changes in income and
expenses
 Identify conflicting demands on

cash flow
 Assess cash products for

suitability for the client’s
situation
 Assess the financial and tax
implications of acquiring /
disposing of cash products
2.5 Budget planning Information required to develop a  Collect information necessary
budget to prepare a budget
Budget reconciliation; utility and use  Prepare statements of the

client’s budget
 Assess the appropriateness of

the client’s budget given the
client’s existing and potential
future financial situation
2.6 Savings analysis and Saving to build a cash reserve  Determine how the client
strategy makes savings decisions
Saving as part of the budget (propensity to save)
Saving and cash flow  Determine the appropriate

saving vehicles for a client
Financial literacy level
 Determine the amount of
Family relationships and how they saving needed for a client
impact saving and spending
decisions  Calculate the savings ratio
Establishing savings strategies  Differentiate saving from

investing
Saving for special goals, such as
education, buying a house, etc.
2.7 Emergency fund Importance of an emergency fund  Determine the client’s
and how much is sufficient for an emergency fund provision
emergency fund
 Assess whether an emergency
Appropriate emergency funding fund is adequate for a client
vehicles and strategies, in
coordination with human capital  Assess the appropriateness of
characteristics and insurance waiting the client’s emergency funding
periods provision given the client’s
existing and potential future
Using credit cards/revolving credit for financial situation
emergency funding
 Determine the size and
Importance of always having liquid stability of emergency funding
assets needed by a client
2.8 Credit and debt management Credit or a type of credit  Determine how the client
makes spending decisions
Factors lenders use to evaluate
potential borrowers  Determine the client’s attitudes
towards debt
Appropriate and inappropriate uses
and levels of debt (i.e., credit and  Leverage effect of financing for
debt management) a client
Specific purpose cash management  Assess financing alternatives

(e.g., education planning, home for a client
buying)
 Assess debt management
Approaches to debt management products for suitability for the
client’s situation
 Assess the financial and tax

implications of
acquiring/disposing of debt
management products
3. Financial Planning Curriculum Component: Tax Principles and Optimization

Objective: The Tax Principles and Optimization Component prepares the student to understand and
broadly evaluate strategies and techniques to maximize the present value of the client’s after-tax net worth
and includes: the principles, current law and practice of taxation and their impact on the client’s financial
situation, and financial planning for individuals, couples and families in their roles as individual investors,
employees and business owners.
3.1 Taxation principles Tax avoidance vs tax evasion  Understand the tax system and
framework in our local territory
Tax system and framework
 Explain income tax-related
terms
Income tax and capital gains tax
for individuals and their business  Understand generally
acceptable tax-related record
Assets and the tax nature of keeping practices
liabilities
Gifting (e.g., donations to family)
Estate
International
Other tax
Tax documents
Tax returns
Asset location (e.g., taxable,

sheltered, deferred, tax free)
Taxation of estates / wealth

transfer
3.2 Tax planning principles Collection of Tax documents  Determine the client’s attitudes
toward taxation
Compliance and penalties for  Identify information related to
non-compliance the client’s income situation
Assessable Income  Understand the types of tax

documents used by individuals,
households and small
Current tax liabilities businesses
Allowable Deductions  Understand relevant tax

documents
Tax planning structures and
methods  Evaluate whether the client has
remained in compliance with all
the tax obligations and be able
Investment structures with tax
to determine the appropriate tax
implications data for the client’s returns,
referring to a tax specialist if
Tax strategies in financial necessary
planning
 Understand the current tax
Efficient use of sheltered liabilities of the client
accounts
 Demonstrate a working
knowledge of the legal
concepts and principles and the
underlying taxation system
 Understand the taxation

requirements relating to
individuals, companies,
partnerships and trusts
 Assess financial impact of tax

planning alternatives
3.3 Tax planning objectives Maximize after-tax return  Collect information regarding
the client’s tax position
 Identify parties relevant to the

client’s tax situation
3.4 Tax analysis and  Identify current, deferred and
calculations future tax liabilities
 Identify current and deferred

retirement-related taxes
 Identify taxable nature of

investments
 Identify taxable nature of assets

and liabilities
 Understand gift taxes if

applicable to a transaction in
your territory
 Understand estate taxes if
applicable to your territory
 Analyze and be able to explain

the effects of ownership and
beneficiary designations on
estate taxes
 Understand in general terms

how different products are taxed
and the effect this has on the
client’s overall financial position
 Analyze the types of taxes that

apply to products as part of the
total estate
 Analyze the tax exposure of the

client’s current retirement plan
3.5 Tax planning strategies Available allowances and  Consider potential tax strategies
deductions and structures
Deferral of income and expenses  Understand the current tax

strategies utilized by the clients
Asset location and the extent to which they are
functioning and whether a client
should be referred to a
specialist
 Evaluate existing tax strategies

and structures for suitability for
a client
 Develop tax planning strategies

for a client
 Evaluate advantages and

disadvantages of each tax
planning strategy
 Optimize strategies to make tax

planning recommendations for a
client
 Compare, analyze and

recommend taxation strategies
to develop comprehensive client
solutions
 Prioritize action steps to assist

the client in implementing tax
planning recommendations
4. Financial Planning Curriculum Component: Investment Planning and Asset Management
Objective: The Investment Planning / Asset Management Component prepares the student to develop
strategies and use techniques to optimize returns on assets considering the client’s requirements and
constraints and life objectives as well as to understand: various types of securities traded in financial
markets, investment theory and practice, portfolio construction and management, and investment strategies
and tactics. (Note: The terms risk, risk exposure and risk tolerance refer to the risk of financial loss due to
market circumstances.)
4.1 Investment principles Principles of risk and return:  Apply the overall set of
 Diversification principles or strategies that
 Asset allocation guide an investor
Funding (contribution) strategies  Explain the reasons why one

investment principle is
preferable to another in a
given set of economic or
financial circumstances for a
specific client
 Apply the principles of, and

correlation between, risk and
return
 Explain the rationale for

diversification of the client’s
portfolio
4.2 Investment objectives, Objectives:  Explain how the investment
constraints and suitability  Real income vs. Capital decision making should be
Growth linked to client life cycle
 Capital Preservation objectives
Constraints:  Explain the implication of

 Managing constraints various constraints on
investment decision making
between investment
objectives  Explain the implication of
 Liquidity client risk tolerance on
 Taxability of portfolio investment decision making
 Risk tolerance and capacity
 Asset location  Identify the client’s
assumptions and return
 Restricted investment expectations and mutually
choices agree on assumptions
 Calculate required rate of

Suitability return to reach the client’s
investment needs objectives
Risk and return (growth compared
with preservation)
4.3 Investment time horizon Short, Medium and Long Term  Identify the client’s time
horizon for investing
Historic risk and return
measurements for various asset  Explain implications of time
classes as they relate to client’s horizons
investment period
4.4 Behavioral finance Practical implications of behavioral  Explain behavioral finance
finance biases biases
Prospect theory and loss aversion  Contrast traditional and

behavioral finance
Anchoring perspectives on investor
decision making
Mental accounting
 Compare traditional and
Confirmation and hindsight bias behavioral finance
perspectives on portfolio
Gambler’s fallacy construction and the
behavior of capital markets
Herd behavior
Overconfidence
Overreaction and availability bias

4.5 Asset classes and securities Traditional:  Describe the characteristics
 Cash of each asset class
 Stocks
 Bonds  Explain liquidity in relation to
each of the asset classes
 Real Estate
 Compare and contrast the
Non-traditional/Alternatives:
 Alternatives/Hedge funds risk and return of different
asset classes
 Direct private investment
 Insurance-based Explain MPT (i.e., risk reduction
investments by combining “risky” assets)
 Commodities
 Derivatives
 Collectibles
 Others
4.6 Investment theory Portfolio theory  Explain principles of

investment theory
Markowitz/Efficient frontiers (MPT)
 Discuss the implications for
portfolio design
CAPM
Portfolio management techniques
4.7 Performance measurement Issues in measuring performance  Sharpe ratio

 Explain the issues around
Implications of fees/charges performance measurement
 Explain appropriate
Time and currency weighted return benchmarks when assessing
performance
Risk adjusted performance
measurement
Capital markets expectations

(forecasting for different asset
classes, market premium, etc.)
4.8 Asset allocation Strategic asset allocation  Design a portfolio to meet

client needs and constraints
Tactical asset allocation
 Determine the client’s current
asset allocation
Active investment
Passive investment
Investment Policy Statement
Rebalancing portfolio strategies
4.9 Investment products Collective (e.g., mutual funds) and  Explain features and benefits
individual investments in the asset of investment products and
classes relevant to the jurisdiction suitability to client needs
Financial markets
5. Financial Planning Curriculum Component: Risk Management and Insurance Planning

Objective: The Risk Management and insurance Planning Component prepares the student to develop
strategies and use techniques to manage financial exposure due to personal risk. (Note: The terms risk, risk
exposure and risk tolerance refer to the risk of financial loss due to personal circumstances [i.e., pure risk]).
5.1 Risk management principles Non-investment risk management  Explain terminology relevant
to risk management
Fundamentals of risk management:
 Treatment of risk  Explain the meaning of risk
 Risk management: assumptions and and the role it plays in
transfer financial advice and planning
 Client perceptions and biases
 Identify the types of risk clients
 Basic risk management techniques face
 Application of risk management
process  Explain the difference
 Personal risk tolerance and between pure risk and
management speculative risk
 Define insurance and its

Principles of insurance: characteristics
 The meaning of risk
 Types of risk  Compare and contrast life,
 Pure and speculative risk health, property and liability
insurance
 Major types of pure risk
 Characteristics of insurance  Explain the terms and
 Types of insurance conditions found in domestic
 Law of large numbers and small business insurance
policies
 Analyze the pure risk faced by

the client and the most
appropriate techniques for
mitigating such risks
 Define insurable interest
 Apply the principle of

indemnity
 Explain the subrogation

principle and how this principle
effects the client
 Assess the suitability of

insurance products, including
the effects of taxation
 Calculate appropriate levels of

insurance cover based on a
client’s needs analysis
 Evaluate and differentiate

between policies
5.2 Insurance planning Insurance and risk  Determine the client’s risk
objectives management objectives
Collection of client information
 Collect details of the client’s
personal information
 Collect information about the

client’s current and past health
issues
 Collect details of the client’s
existing insurance coverage
 Identify lifestyle issues relevant

to a client
5.3 Analysis and evaluation of Introduction to general insurance  Assess the appropriateness of
risk exposures types of personal and general
Introduction to life insurance insurance
Risk exposures  Evaluate the client’s personal
Health insurance and mandated cover and general insurance
exposures
 Identify risks associated with

existing and potential financial
obligations
 Identify the client’s tolerance

for handling risk exposure
 Assess lifestyle issues

relevant to a client
 Assess health issues of a

client
 Identify the client’s willingness

to take active steps to manage
financial risk
 Examine the characteristics of

existing insurance coverage
and policy exclusions
 Evaluate risk management

strategies and products
 Assess the client’s exposure

to financial risk
 Assess risk of loss
 Assess the client’s insurance

needs
 Assess the client’s risk

exposure against current
insurance coverage and risk
management strategies
 Assess the implications of

changes to insurance
coverage
 Prioritize the client’s risk

management needs
 Assess the financial, estate

and tax implications of
acquiring/disposing of
insurance products
 Assess the affordability of

products in relation to client’s
financial solution, advice, plan
or resources
5.4 Risk strategies Introduction to risk management  Develop risk management
strategies strategies using risk
management steps
The application of risk management
principles  Evaluate advantages and
disadvantages of each risk
Case studies in risk management and management strategy
insurance planning
 Optimize strategies to make
risk management
recommendations

the client in implementing risk
management
recommendations
5.5 Risk products Life insurance products  Identify and critically evaluate
General insurance products the cover provided, conditions and
exclusions contained in these
Personal, for example: insurance products
 Term Life
 Total Disability  Discuss the taxation of
 Trauma / Critical Illness insurance products
 Explain the taxes that can
 Income Protection
apply to insurance premiums
 Accident insurance
 Traditional – whole of life &  Explain the taxation of
endowment insurance claims proceeds
 Universal, variable life and non-
traditional life insurance
 Explain deductibles and risk
 Insurance Bonds
assumption
 Annuities
 Health insurance
 Long term care
 Terms and conditions
Property, for example:

 Real estate insurance
 Vehicle insurance
 Contents insurance
Liability, for example:

 Travel insurance
 PI insurance
 Public Liability
Business related, for example:

 Business insurance
 Key-man insurance and small
business need
 Business overhead cover
 Board member cover
Other private insurance
5.6 Insurance law and claims Legal and financial characteristics of  Identify and explain the
process insurance parties involved in an concepts that underlie
insurance contract: insurance law
 The insurance company
 The policy owner  Discuss the steps in the
 The beneficiary construction of an insurance
contract
 The insured
Concepts underlying insurance law:  Explain the purpose of policy

 Insurable interest indemnity exclusions, conditions and
 Doctrine of utmost good faith endorsements
 Duty of disclosure
 Identify the circumstances
 Doctrine of subrogation under which a policy can be
 The ‘subject to average’ clause cancelled
 The doctrine of contribution
 Identify and discuss the role of
Making the insurance contract the regulators of the insurance
industry
Claims process:
 Claim notification  Explain the consumer
 Proof of loss protection that applies to
 Onus of proof insured parties to an
insurance contract
 Proximate cause
 Liability insurance  Evaluate the roles and
 Exclusions responsibilities of insurance
 Fraudulent claims intermediaries
 Loss by own act
 Discuss the insurance policy
 Quantifying the loss
claims process
 Underinsurance
 “Double” or “other” insurance  Discuss the regulatory control
of insurance companies and
Regulation and compliance intermediaries
Taxation of insurance policies

5.7 Product/adviser/company Choosing an insurance policy  Explain what is important in
selection and due diligence the selection of an adviser
Adviser selection  Explain the important
Company evaluation and selection elements to consider when
selecting an insurance
Due diligence company
 Discuss the standard of care
an adviser should exercise to
protect confidentiality for client
records
6. Financial Planning Curriculum Component: Retirement Planning

Objective: The Retirement Planning Component prepares the student to develop strategies and use
techniques for wealth accumulation and withdrawal during retirement years, taking into consideration the
structure and impact of public and private retirement plans on the client’s financial plan.
6.1 Retirement principles The need for and value of early  Demonstrate the concept “time
and consistent planning for is money” to motivate clients to
retirement begin as early as possible with
their retirement plans
The need for real cash flow in
retirement  Help clients to improve their
financial knowledge/literacy
The power of compound interest
and its application to retirement  Evaluate the distribution
income systems vs. the contribution
systems
From distribution to contributions
systems (Elaborate of how in the
distribution systems, clients do not
require financial education. In the
new trend of contribution systems,
financial education is necessary,
as they are required to administer
their own retirement portfolios)
Selecting and administering Long-

term investment portfolios
Risk-return, consumer attitudes,

financial education and
implications for retirement planning
6.2 Retirement objectives Financial objectives based on real  Identify the client’s retirement
money/currency: objectives (first ability for
 Calculation of capital required adviser)
for retirement
 Establishment of accessible  Determine the client’s attitudes
targets toward retirement
Establish retirement income  Determine the client’s comfort

targets in a changing economic with retirement planning
and political environment assumptions
Lifestyle objectives:  Assess trade-offs necessary to

 Activities for retirement meet a client’s retirement
 Health care plan for retirement objectives
 Calculate capital required for a

client’s retirement
 Identify post-retirement lifestyle

objectives
 Discuss available health care

plans available for retirees
6.3 Retirement needs analysis Inflation and the impact on  Collect the details (information
and projections retirement income needs regarding) of a client’s
estimated retirement expenses
Longevity risk
 Assess financial requirements
Goal classification at retirement date for a client
 fixed and terminable (e.g.,
mortgage)
 fixed and permanent (e.g.,
mortgage)
 variable and terminable
(e.g., college funding,
family support)
 variable and permanent
(e.g., basic living
expenses)
Goal priority
Sequence risk
6.4 Potential sources of retirement Types of employee benefits  Collect the details (information
income regarding) of a client’s potential
Pension funds: sources of retirement income
 Employer sponsored
o Defined contribution  Analyze the various pension
o Defined benefits and associated employment
o Funds benefits that an employee earns
based on his years of service at
a company
New forms of plans
State sponsored plans
Annuities
Personal
Other sources of retirement

income
Pension design for closely held
business
6.5 Retirement income and Pre-retirement planning  Develop financial projections

withdrawal projections and based on current position and
strategies Portfolio construction and expected income and savings
distribution strategies – converting growth on the client’s retirement
plan
capital growth to income
generation  Assess if the client’s retirement
objectives are realistic
Sources of retirement cash flow
 Assess the impact of changes
The three basic retirement-income in assumptions on financial
funding sources (sometimes projections for a client
referred to as the “three-legged
 Identify sources of income
stool” of retirement) are available for investing
government pension programs,
employer-provided retirement
plans and personal retirement
savings
Fixed and variable income

instruments
Retirement distribution rates
Retirement transition strategies for

business owners
Impact of taxes on retirement cash

flow
6.6 Retirement planning products Retirement planning products  Analyze and implement
relevant to the jurisdiction and their potential retirement planning
application in retirement planning, strategies and products
typically investment products and
 Assess the suitability of
in particular insurance products
retirement products given the
and annuities client’s situation
Product risk and due diligence  Assess the financial and tax
implications of acquiring /
disposing of retirement
products and assets
7. Financial Planning Curriculum Component: Estate Planning and Wealth Transfer
Objective: The objective of Estate Planning and Wealth transfer Component is the preparation of the
student/candidate to understand and broadly evaluate strategies and use techniques to handle the
preservation and distribution of accumulated assets, and to understand the legal, tax, financial, and non-
financial aspects of this process, to efficiently conserve and transfer wealth, consistent with the client’s goals.
7.1 Estate planning principles The estate planning process  Explain estate planning and
distribution terms
Estate Planning:
 Estate  Explain estate transfer
 Wills methods and tools
 Intestacy
 Choosing an executor  Understand the implications of
incapacity in estate planning
 Administration of estate
Asset Protection
Methods of estate transfer and

transferring assets
Different types of trusts
Power of Attorney
Incapacity planning
Business succession planning
Estate vs non estate assets
Guardianship
Philanthropy
7.2 Estate planning objectives Beneficiary selection  Explain the basis for the client’s
estate planning objectives
Charitable giving and philanthropy,
including foundations and  Explain the family dynamics
and business relationships that
endowments
could impact estate planning
strategies for a client
Tax implications
 Discuss constraints to meeting
Small business control issues the client’s estate planning
objectives
 Appraise the specific needs of

beneficiaries
7.3 Legal requirements Different legal requirements for  Identify the jurisdictional legal
requirements embodied in
estate planning estate planning related
documents
7.4 Asset ownership and its Planning techniques  Evaluate the consequences of
implications ownership options
Asset transfer at death
 Evaluate the consequences of
asset transfer at death
7.5 Estate planning documents Estate planning documents, for  Describe the legal forms of
example: interest the client may possess
 Wills
 Trust deeds  Analyze terms, documents and
 Power of attorney client objectives relating to
 Beneficiary designation estate distribution
documents
 Explain the process of drawing
up wills and can outline estate
administration processes.
7.6 Succession planning Development of succession plan  Evaluate family dynamics and
business relationships that
Bequests could impact estate planning
strategies of a client
Business succession
 Develop the method of estate
transfer
7.7 Special family situation Non-traditional family  Analyze the specific needs of
arrangements beneficiaries
Incapacity
Guardianship
7.8 Projected financial situation at Liquidity  Analyze the liquidity of the

death estate at death
Assets
 Project net worth at death
Liabilities
 Calculate potential expenses
Tax Implications and any tax liability at death
7.9 Estate planning strategies Methods  Design estate planning
strategies
Structures
 Evaluate each estate planning
Tools strategy
 Optimize strategies to make

estate planning
recommendations

the client in implementing
estate planning
recommendations
8. Financial Planning Curriculum Component: Integrated Financial Planning
Objective: The Integrated Financial Planning Component serves as a capstone course that allows the
student to engage in critical thinking, make decisions and integrate among the Curriculum Components
(Principles and Practices of Financial Planning, Financial Management, Asset Management, Risk
Management, Tax Planning, Retirement Planning and Estate Planning) while developing strategies,
recommendations and financial plans for clients using real world situations and facts.
8.1 Client engagement and Purpose, benefits and elements of

a financial plan  Apply the financial planning
financial planning process
process in accordance with
What makes a compliant plan Financial Planning Standards
Board (FPSB) standards and
Disclosure and identification of key ethical practices
information  Apply the financial planning
process in the practice of
Gathering client data and financial planning to client
determining goals; time and scenarios
funding/currency specific and
prioritized  Apply the steps involved in the
financial planning process to
Establishing client's financial client scenarios
status and needs  Demonstrate the ability to
communicate with clients
Developing and presenting the effectively and build rapport to
financial plan obtain personal information in a
data gathering roll play
Understanding the implementation
of the financial plan  Demonstrate the ability to
present the financial plan in a
Understanding the review and roll play
monitoring process of the financial
 Construct a compliant and
plan
suitable financial plan,
including an IPS.
Resolution of conflicts arising from
dealing with clients having  Conduct periodic reviews of the
unrealistic goals financial plan
Impact of death and divorce  Evaluate the legal and

professional elements when
Impact of roadblocks such as compiling a financial plan for a
unemployment, large unexpected client
financial expenditures, etc.
8.2 Collection and data Gathering client data and  Identify the information required
determining needs & goals; for the financial plan (detailed
record-keeping, security and later in this list)
confidentiality
 Collect the information required
Assumptions to develop a suitable financial
solution and or a suitable
financial plan
 Explain the purpose of data
collection and its value in client
relationship management
 Apply the knowledge and skills

necessary for explaining how
the information obtained is
incorporated in the overall
scheme of the client’s financial
solution
 Identify the client’s objectives,

financial needs and values that
have financial implications
 Identify the financial and tax

information required to develop
a suitable financial solution or a
suitable financial plan
 Identify the client’s legal and

estate issues that may affect
the financial solution and or the
financial plan
 Identify the client’s risk

management issues that may
affect the financial solution
and/or the financial plan
 Identify the client’s risk

tolerance, capacity, needs and
issues that may affect the
financial solution and/or the
financial plan
 Determine any client

investment constraints (e.g., no
international investments or no
commodities, etc.)
 Determine the clients attitudes

and level of financial
sophistication
 Identify material changes in the

client’s personal and financial
situation
 Prepare information to enable

analysis
8.3 Attitudes, goals and objectives Financial Management:  Identify the client’s objectives,
 Information on the client’s needs and values that have
propensity to save financial implications
 Information on how the client
makes spending decisions  Determine the client’s attitudes
 Information on the client’s and level of financial
attitudes toward debt sophistication
 Information on major purchases
planned  Determine the client’s
propensity to save
Tax Principles and optimization:
 Information on possible current,  Determine the client’s attitudes
deferred and future tax toward debt
liabilities
 Determine the client’s
Investment Planning / Asset investment objectives
Management:
 Details on the client’s  Determine the client’s
investment objectives experience with and attitudes
 Information on the client’s time and biases toward investments
horizon(s)
 Information on the client’s  Determine the client’s tolerance
tolerance to investment risk for investment risk
 Information on the client’s
investment constraints  Identify the client’s time horizon
Risk Management and Insurance  Determine the client’s risk

Planning: management objectives
 Information on the client’s risk
management preferences and  Determine the client’s
objectives willingness to take active steps
to manage financial risk
Retirement Planning:
 Information on the client’s  Prioritize the client’s risk
planned transition to retirement management needs
 Information on the client’s
retirement plans and objectives  Determine the client’s attitudes
 Information on the client’s toward taxation
tolerance to risk in retirement
 Determine the client’s
Estate Planning and Wealth retirement objectives
Transfer:
 Information on the client’s  Determine the client’s attitudes
estate planning objectives toward retirement
including distribution of assets
to heirs  Identify the client’s estate
 Details on specific needs of planning objectives
beneficiaries
 Details on guardianship of  Assess the specific needs of
minor children beneficiaries
 Understand the client’s

personal goals and
fundamental motivations and
understanding whether these
are based on reasonable
financial grounds, or on other
beliefs and expectations, or on
false reasoning and
misunderstanding
 Apply the knowledge and

appropriate skills for
recognizing the client's system
of values
 Understand the client’s

attitudes that generate
personal, financial and
professional motivations
regarding present and future
needs, expectations, and
personal and financial wishes
8.4 Issues and problems Financial Management:  Identify and discuss the client
 Issues relevant to the client’s issues and problems in the
assets and liabilities, for applicable financial planning
example: components, including difficult
o Budgetary issues conversations, clients in crisis,
o Use of bank accounts and third-party advice and client
credit/debit cards complaints
o Placement and use of debt
and cash management
 The client’s emergency fund

provision, if applicable
 Education funding
Tax Principles and Optimization:

 Maximize risk adjusted after tax
return
 The client’s attitudes toward
taxation
 Appropriateness of current
investment structures (if tax is
applicable)
 Future changes in taxation
Investment Planning / Asset

Management:
 The client’s experience with,
and attitudes and biases
toward, investing
 The client’s tolerance for
investment risk (attitude and
capacity)
 The client’s assumptions and
return expectations and
conflicts between these and
those of the financial planner
 Conflicts in risk tolerance
between spouse/domestic
partners
 Time horizons
 Manage investment expenses
Risk Management and Insurance

Planning:
 The client’s tolerance for, and
attitudes toward:
o Risk exposure
o Relevant lifestyle issues
o Relevant health issues
 The client’s willingness to take

active steps to manage
financial consequences
Retirement Planning:
 The client’s attitudes toward
retirement
 The client’s comfort with
retirement planning
assumptions
 Alignment of the client’s
retirement provision and the
reality of expectations, for
example, need to work part-
time or delay retirement to
achieve goals
Estate Planning and Wealth

Transfer:
 Family dynamics and business
relationships that could impact
estate planning strategies
 Appropriateness of documents
to meet estate planning
objectives
 Specific bequests and minimum
size of estate
 Specific needs of the client’s
beneficiaries
8.5 Analysis Cash flow and debt management  Create a private balance sheet
based on the information of the
Tax client and show the
appropriateness of sector and
Investments regional diversification
Life insurance and risk products  Evaluate the investments of the

client with the market price
Retirement
 Create a private Profit and Loss
Social security and aged care / cash flow statement based on
the information of the client
Estate planning
 Distinguish between profit and
cash related items (profitability /
liquidity)
 Calculate the return on
investment of clients
investments
 Calculate the cash flow in the

case of personal incapacity
 Analyze the risk and return of

any investments and
correlations with other portfolio
positions
 Examine potential opportunities

and constraints and assesses
information to develop
strategies; also
 Analyze the client’s objectives,

financial needs, values and
information to prioritize the
Financial Planning Components
/ to identify potential financial
solutions
 Analyze inter-relationships
among Financial Planning
Components
 Compare opportunities and

constraints and assess
collected information across
Financial Planning Components
 Evaluate information to assess

the client’s situation
 Examine the impact of

economic, political and
regulatory environments /
requirements related to the
client and potential financial
planning solution
 Measure the progress toward

achievement of objectives of
the financial plan
8.6 Strategies Product strategies  Assess strategies related to
products
How to assess advantages and
disadvantages of potential  Create an asset allocation
solutions based on client’s needs, risk
Description of strategies mentality, global economic
situation and global economic
outlook including the time frame
of the client
 Assess advantages and

disadvantages of each potential
financial solution
 Describe each financial
planning strategy
8.7 Synthesis and Development and presentation of  Synthesize information to

recommendations a financial plan develop and evaluate strategies
to create a suitable financial
Client engagement (including plan plan
rationale and process education)
and permission to proceed with  Prioritize recommendations
plan implementation from the Financial Planning
Components to optimize the
client’s situation in relation to
the client’s objectives, needs
and values
 Consolidate the
recommendations and action
steps into a compliant and
suitable financial plan
 Develop a prioritized
implementation plan, including
timeframes and responsibilities
 Determine which financial

solutions meet the client’s need
 Recommend a suitable financial

solution and/or a suitable
financial plan
 Document a compliant
recommendation
8.8 Implementation Implementing the financial plan  Develop a prioritized

implementation plan, including
timeframes and responsibilities
 Demonstrate the
implementation of the agreed
financial plan in a roll play
8.9 Periodic review Monitoring and reviewing the  Determine the appropriate
financial plan process and cycle of review for
the financial plan
Addressing changes in client
circumstances and goals
Holding review meetings

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Financial Planning

CFP Certification Global excellence in financial planningTM

FPSB’s Financial Planning Education Framework

I. Financial Planning Learning Level Descriptor .................................................................................. 3

II. Financial Planning Education Components ...................................................................................... 5

III. Financial Planning Education Topic Categories .............................................................................. 7

IV. Financial Planning Education Areas (by Component) ............................................................... 9–16

1. Financial Planning Principles, Process and Skills ........................................................................... 9

2. Financial Management .................................................................................................................... 10

3. Tax Principles and Optimization ..................................................................................................... 11

4. Investment Planning / Asset Management ..................................................................................... 11

5. Risk Management and Insurance Planning .................................................................................... 13

6. Retirement Planning ........................................................................................................................ 14

7. Estate Planning and Wealth Transfer ............................................................................................. 14

8. Integrated Financial Planning ......................................................................................................... 15

FPSB’s Financial Planning Curriculum Framework

V. Topics, Subtopics, and Learning Outcomes ............................................................................. 17–45

The ultimate goal with the Financial Planning Education Framework is to

FPSB’s Financial Planning Education Framework consists of:

I. Financial Planning Education Learning Level Descriptor

I. FINANCIAL PLANNING EDUCATION LEARNING LEVEL DESCRIPTOR

 Demonstrate appropriate knowledge and understanding (including critical understanding of theories

FPSB’s Integrated Approach to Competency Based Education & Development

1. Financial Planning Principles, Process and Skills

3. Tax Principles and Optimization

4. Investment Planning / Asset Management

5. Risk Management and Insurance Planning

7. Estate Planning and Wealth transfer

8. Integrated Financial Planning

1. Financial Planning Principles, Process and Skills

3. Tax Principles and Optimization

4. Investment Planning / Asset Management

5. Risk Management and Insurance Planning

7. Estate Planning and Wealth Transfer

8. Integrated Financial Planning

III. FINANCIAL PLANNING KNOWLEDGE TOPIC CATEGORIES

1. Financial Planning Principles, Process, and Skills

1.1 Financial planning process

2.1 Principles of financial management

3. Tax Principles and Optimization

3.1 Taxation principles

4. Investment Planning / Asset Management

4.1 Investment principles

5. Risk Management and Insurance Planning

5.1 Risk management principles

6.1 Retirement principles

7. Estate Planning and Wealth Transfer

7.1 Estate planning principles

8. Integrated Financial Planning

8.1 Client engagement, communication, and financial planning process

1. Financial Planning Principles, Process and Skills Learning Outcomes

1.1 Apply the financial planning process

1.4 Demonstrate communications skills

1.5 Demonstrate analytical skills

1.6 Demonstrate presentation skills

1.12 Apply time value of money principles

2. Financial Management Learning Outcomes

2.1 Collect information regarding the client’s assets and liabilities

2.3 Collect information necessary to prepare a budget